Mortgage application volume increased 2.8% on an adjusted basis during the week ended November 29, as the average contract rate for 30-year fixed-rate mortgage with conforming loan balance fell to 6.69%, down from 6.86% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
It was the second consecutive week that application volume increased – driven mainly by a bump in purchase applications.
Applications for refinances decreased 1% compared with the previous week and were down 7% compared with the same week one year ago.
Applications for purchases increased 6% compared with the previous week but were down 21% compared with the same week one year ago.
“Mortgage rates fell to their lowest level in over a month last week, with the 30-year fixed rate decreasing to 6.69 percent,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year. The purchase index increased for the fourth straight week to its highest level since January 2024. Conventional refinance applications declined despite the lower rates, but FHA and VA refinances rebounded from a week ago.”
The refinance share of mortgage activity decreased to 38.7% of total applications, down from 38.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent of total applications.
The average contract interest rate for a 5/1 adjustable-rate mortgage was 6.24%, down from 6.34%.
Photo: Ben Mullins
